Washington, D.C. – Today, Congressman Tom Emmer (MN-06) supported a package of pro-growth, pro-business reforms which includes his legislation, the Micro Offering Safe Harbor Act. This bill was included in the Accelerating Access to Capital Act which passed off the House Floor with a bipartisan vote of 236-178.
The Micro Offering Safe Harbor Act, H.R. 4850, is Emmer’s third bill to pass out of the U.S. House of Representatives in his first term.
Since the enactment of the Dodd-Frank Wall Street Reform Act six years ago, the number of credit unions and community banks in the state of Minnesota has been reduced by nearly 25 percent. As a direct result of this trend nationwide, three million fewer small business loans are made each year.
“Small businesses are responsible for nearly 70 percent of new jobs, and today’s small business is tomorrow’s big business,” said Emmer. “If this current lack of small business lending and entrepreneurial access to start-up capital continues, who knows what big business of tomorrow may never be realized. That is why I am proud to have a bill included in the Accelerating Access to Capital Act. By making it easier for entrepreneurs to access capital, Minnesotans will be able to launch their business ideas, and encourage the creation of jobs, wealth and opportunity for everyone. It’s time for us to make it easier for people to achieve the American Dream by getting government out of their way and empowering people to do what they do best – create, innovate and prosper.”
The Micro Offering Safe Harbor Act is not a new law, but rather clarifies the Securities Act of 1933 by making an explicit safe harbor for certain non-public offerings. This bill allows small businesses to operate with confidence that they are not in violation of the law when doing a non-public securities offering if they meet the following criteria:
- Each investor has a substantive pre-existing relationship with an owner;
- There are 35 or fewer investors; and
- The aggregate amount of the investment does not exceed $500,000.
Several small business advocacy organizations have endorsed the Micro Offering Safe Harbor Act including the National Small Business Association and the Small Business & Entrepreneurship Council (SBEC). The SBEC stated, “The legislation would appropriately scale federal rules and regulatory compliance for small businesses, thus providing another practical option for entrepreneurs to raise the capital they need to startup or grow their firms.”
The Micro Offering Safe Harbor is H.R. 4850. Click here to read the full text.
Congressman Emmer serves as a Member of the House Financial Services Committee.